Factors such as the company's expenses and its desired return on investment are taken into account when Bank of America sets its prime rate. The bank also considers broader macroeconomic conditions when setting its prime rate.
At times, Bank of America refers to its prime rate as the reference rate. The bank uses the rate as a starting point for pricing a number of its loans. The Bank of America prime rate is not to be confused with the Wall Street Journal prime rate which is a different rate altogether. The WSJ prime rate is a number derived from evaluating the rates offered by numerous banks throughout the United States.